Market Development Strategy for India's Rail Company Ircon in Asia, Africa, and Middle East

Introduction

The development of infrastructure projects of public importance like transportation, public utility buildings like institutions, hospitals and utility buildings are the priority of the developing economy in the world. The construction sector consists 6 – 15% of any national economy and the construction of public infrastructure market is still a bulk market which is fragmented into sub markets as the work is contracted among the set of contractors locally and internationally (Mawhinney, 2001). The world organisations such as World Bank encouraged the governments to pursue policies to involve other country organization and privatization of certain projects for delivering the infrastructure services and projects for more efficiency (Kirkpatrick et al., 2006). The impact of rail transportation developement in India has positive impact and benefits interms trade costs and interegional price gaps, increased interegional and international trade, increased real income level during colonial period (Donaldson, 2018). Ircon International limited is a government of India incorporated company under the Ministry of Railways, India as public-sector company and is a turnkey contractor and specialized in the construction of railways, railway electrification, signal and telecommunication, highways, roadways, industrial, commercial and residential buildings, airports, mass rapid system and leasing of railway machineries. Ircon has completed more than 300 Infrastructure projects in India and 100 projects across the globe in more than 21 countries in Asia, Africa and Europe (Ircon Website, 2015). The company has earned a total foreign exchange of Rs 2117 crore in the period of 2008- 2013 (Jagarn Josh, 2013). The infrastructure budget in East Asia countries has tremendously increasing to match the increased economic activity in the region. India being a developing economy is at task in implementing projects across major cities it needs US $ 190 billion for the growing needs of infrastructure development (World Economic Forum website, 2010). ASEAN countries have open market principles which are unlikely to change and the positive cooperation as well business integration shows it is largely market driven economies with huge trade and positively increased FDI inflows into the infrastructure sector with strong supply chain network supported by various organisation shows positive economic activity (Bhattacharyay & Nath, 2009). The Table 1 gives the porjected spending on infrastructure in Asian countries.

Source: (PwC, 2014)